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The Debate Over State-Level Inequality:Transparent Method, Rules of Evidence, and Empirical Power

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  • Wojan, Timothy R.

    (University of Kentucky)

  • Maung, Adam C.

    (University of Kentucky)

Abstract

This article challenges the reliance on summary measures to inform trends in state level inequality. Since only a partial ordinal ranking of inequality is available to the researcher, one can never be certain if the results from a cardinal measure of inequality are unambiguous with respect to an implicit value orientation. In addition, we examine the robustness of results examining regional cost-of-living adjusted per capita income data. If cost-of-living differentials across states are substantial, then it is reasonable to expect that individuals with substantial components of unearned income most sensitive to these differentials will tend to reside in low-cost states-states which also tend to have lower incomes. Trends in the price adjusted earnings per worker series is examined to assess the power of analyses using per capita income to inform the process of regional income convergence.

Suggested Citation

  • Wojan, Timothy R. & Maung, Adam C., 1998. "The Debate Over State-Level Inequality:Transparent Method, Rules of Evidence, and Empirical Power," The Review of Regional Studies, Southern Regional Science Association, vol. 28(1), pages 63-80, Summer.
    • Handle: RePEc:rre:publsh:v:28:y:1998:i:1:p:63-80
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    Cited by:

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    2. Tatiane Almeida de Menezes & Carlos Roberto Azzoni, 2001. "Estimação de uma Estrutura de Ponderação para as Cidades Brasileiras," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 078, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. George W. Hammond & Eric Thompson, 2006. "Convergence and Mobility: Personal Income Trends in U.S. Metropolitan and Nonmetropolitan Regions," International Regional Science Review, , vol. 29(1), pages 35-63, January.
    4. Eff, E. Anthon, 1999. "Myrdal contra Ohlin: Accounting for the Sources of U.S. County Per Capita Income Convergence Using a Flexible Decomposition Approach," The Review of Regional Studies, Southern Regional Science Association, vol. 29(1), pages 13-36, Summer.
    5. George Hammond & Eric Thompson, 2002. "Mobility and Modality Trends in US State Personal Income," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 375-387.
    6. Portnov, Boris A. & Felsenstein, Daniel, 2010. "On the suitability of income inequality measures for regional analysis: Some evidence from simulation analysis and bootstrapping tests," Socio-Economic Planning Sciences, Elsevier, vol. 44(4), pages 212-219, December.

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